The Globe and Mail reports in its Friday edition that Teck Resources might get to stay in Canadian stock market benchmarks after all. The Globe's Jameson Berkow writes that when the Vancouver-based miner's $20-billion (U.S.) merger with Anglo American PLC was first announced in September, institutional investors balked at Teck having to leave the S&P/TSX Composite Index and the blue-chip S&P/TSX 60 if the deal was completed. Because the combined company, to be called Anglo Teck, would be redomiciled in Britain, the company would no longer qualify for Canadian index inclusion under S&P's rules. But a newly proposed rule change could allow Anglo Teck to remain in Canadian indexes. If the deal moves ahead, the combined company will be headquartered in Canada, but its primary public listing will be on the London Stock Exchange. Secondary listings would be maintained in Johannesburg and New York and exchangeable shares would be listed on the Toronto Stock Exchange, which have the same rights as ordinary shares but with the ability to defer capital-gains taxes. That would result in Anglo Teck joining the FTSE 100 Index and Canadian investors would then have to sell roughly $2.4-billion worth of Teck shares.
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